January 8 (Renewables Now) - German wind and solar park operator Encavis AG (ETR:CAP) intends to double its power generation capacity to 3.4 GW by the end of 2025 under a new growth plan for its business.
The company said in a press release on Wednesday that its strategic growth plan for the next six years is in line with the European Commission’s (EC) Green Deal that aims to make Europe the first climate-neutral continent by 2050. Under it, it will pursue a goal of expanding its capacity at a 12% compound annual growth rate (CAGR) in the specific period through 2025.
To fulfil the plan, Encavis aims to enhance investments in shovel-ready wind and solar projects and also purchase projects at earlier stages of development, keeping a long-term equity ratio of over 24%. The sale of up to 49% in certain wind farms and selected solar parks is also planned in order to free up capital for new investments, along with the refinancing of some solar projects. Additionally, the company intends to cut costs for the operation and maintenance of its solar parks and introduce group-wide cash pooling initiatives.
Based on projections for 2019, Encavis will target EUR 440 million (USD 490.2m) of weather-adjusted revenues for 2025, up from EUR 260 million in 2019, and weather-adjusted operating earnings before interest, tax, depreciation and amortisation (EBITDA) of EUR 330 million. The respective EBITDA margin goal is set at 75%. Weather-adjusted earnings per share (EPS) are anticipated to rise to EUR 0.70 in 2025 from the EUR 0.40 projected in 2019.
Through the so-called Fast Forward 2025 strategy Encavis says it will be “optimally positioned for the coming challenges” related to climate and environmental protection, it said.
(EUR 1.0 = USD 1.114)